Front-month West Texas Intermediate crude fell 1.6% to $90.37 a barrel, while Brent crude dropped 1.2% to $103.43. This bearish momentum stems from reports that Russia intends to export over 300,000 tons of diesel fuel to global markets, followed by 500,000 tons in November and a million tons thereafter. Vivek Dhar of Commonwealth Bank of Australia noted that while this partial lifting of Russia's export ban could alleviate current shortages, the sustainability of these shipments remains tethered to the ongoing conflict involving Ukrainian strikes on Russian energy infrastructure.

Downside pressure remains fragile, however, as the geopolitical landscape in the Middle East grows increasingly volatile. The Houthi missile attack on Saudi Arabia resulted in at least 12 fatalities and hundreds of injuries, prompting the kingdom to vow a military response. President Trump has signaled that the U.S. may participate in retaliatory strikes, a move that could disrupt critical Red Sea supply routes and spike freight costs. Analysts at National Australia Bank suggest that energy prices will face significant two-sided risk throughout the week as markets weigh the promise of Russian supply against the unpredictable fallout of escalating regional warfare.